Bitcoin Fades From Near $80,000 As Senate Vote On Clarity Act Approaches

Bitcoin pulled back roughly 3% from an overnight high of $79,530, trading near $77,400 during European morning hours Tuesday, as investors braced for the Senate’s procedural vote on the Clarity Act crypto market structure bill.

Betting Markets Turn Skeptical On Passage

Market implied odds of the bill passing this year climbed to about 30% after Senate Republicans released a revised 630-page draft incorporating Democratic provisions in hopes of reaching the needed 60 votes. However, odds on prediction platform Polymarket fell sharply to just 18%, down from a Monday peak of 30%, after reports surfaced that several Democrats remained uneasy about revised ethics language. One analyst noted that a failed vote is largely already priced into the market, while an unexpected passage would catch traders off guard.

Options Market And Thin Liquidity Add Volatility

Bitcoin put options have grown slightly more expensive than bullish bets, reflecting caution ahead of a packed macro week that includes the Senate vote, a Federal Reserve rate decision Wednesday, and a Bank of Japan decision Thursday, both expected to include rate hikes. Traders noted that thinning leverage in derivatives markets has left prices more exposed to sharp swings on headlines, as seen last week when bitcoin surged 5% before erasing the entire move within hours. Despite the volatility, demand from bitcoin exchange-traded products remained strong, pulling in nearly 14,000 BTC over the week.